Barrons: Lumber to Soar in the Long Run

By SIMON CONSTABLE

Futures prices for lumber have been riding a wave churned by hurricane Sandy. Quotes for plywood have surged 15%, to $340 per thousand board feet, since the beginning of October, propelled by the prospect of rebuilding in the northeastern U.S. after Sandy's onslaught.

Investors thinking about jumping on lumber for the short term will likely get wiped out. But those willing to hang in for the long haul could enjoy a sweet ride. Read original story here.

Photo by Facundo Sosa on Unsplash

WSJ: Five Gifts of the Financially Inclined

By SIMON CONSTABLE

The holidays are fast approaching and for many that means spend, spend, spend…sometimes too, too much.

Here's a better idea. Give people gifts that at least stand a chance of improving their finances.  Read more here.

WSJ: Earnings Per Share, Explained

By SIMON CONSTABLE

It should be clear that when you invest in a company, you need to know how much money it makes.

But here's the rub: There are several "earnings" figures that a public company reports to its investors. So which one should you look at?

When you look at a company's earnings reports (also known as 10Q and 10K Securities and Exchange Commission filings), they can be a tad confusing. You'll see net income, basic earnings per share and diluted earnings per share—three different measures of profit. See original story here.

Photo by Alexander Mils on Unsplash

Barrons: Get Ready for the Iron-ore Rebound

By SIMON CONSTABLE 

 If your portfolio is looking a little anemic these days, why not fortify it with some iron-ore stocks? They look set for a boost, but investors be warned: These stocks are volatile, so you may need a strong stomach.

The world's largest iron-ore miner, Brazil's Vale (ticker: VALE), and Cliffs Natural Resources (CLF), North America's largest, have taken a beating over the past few months, down 29% and 44% since the beginning of March as China's economy has slowed. That's the bad news. See original post here.

Mining truck

Photo by Dominik Vanyi on Unsplash

WSJ: Spence: Obama's Economic Policy Beats Romney's

By SIMON CONSTABLE

Michael Spence

Photo by Niccolò Caranti, CC BY-SA 3.0, 

via Wikimedia Commons

NBR: Should You Trust Wall St.? Maybe Not

By SIMON CONSTABLE



Something has vanished from Main Street: Trust in Wall Street.

How do we know this? Small investors are dumping stocks.

Even as the stock market has soared close to record highs, retail investors sold $138 billion in shares.The data comes from The Investment Company Institute and tracks mutual and exchange-traded fund investments, a rough proxy for the retail sector.

Some people will tell you that small investors are bailing on stocks because they are too emotional and so they make terrible decisions.  They were burned by the credit crunch and the popping of the tech bubble and are now gun shy.  

In short, the message is, they are stupid because they’ve missed the recent rally, but maybe they aren’t.  Maybe they are justly shy of the shenanigans on Wall Street.  

New research shows that one in five chief financial officers of public companies admit to cooking the books, according to a recent study from professors at Emory and Duke Universities.  In a survey they found that about 20 percent of CFOs used accounting tricks that didn’t reflect the companies’ underlying operations.  The size of the misstatements—about 10 percent of earnings.  

Wow! If that sounds bad, it’s actually worse than you think.  

This type of book cooking is completely legal.  And because it’s legal, nothing will be done about it.  If you don’t know what the company’s truly making, why would you invest?  

Maybe that's a good reason to steer clear of the U.S. stock market.

WSJ: Five Light Reads for Your Financial Library

By SIMON CONSTABLE

Now that the kids are back in school it's time for you to hit the books. Here are five light reads that will boost your financial acumen and (hopefully) inspire you to a more fulfilling career. (Most are available in multiple formats, both in print and as eBooks.) See original post here.